TWSE Press Release

Revisions of TSEC SBL System to be Implemented on January 29th, 2007

Publish Date︰2007/01/24 17:54

With the completion of SBL computer system, TSEC announced new functions of the SBL system effective from January 29th, 2007.

A summary of the launch of new functions is shown as follows:

1.An additional choice for early recall of loaned securities has been announced.
An additional choice for early recall of loaned securities, 1-day prior notice apart from the current 3-day or 10-day prior notice by a lender in a fixed-rate or a competitive auction transaction, has been announced.

2.Regarding collateral transfer
When borrowers execute new loans to return their former borrowing transactions, the former collateral may be designated as the collateral for the new loans on fixed-rate or competitive auction SBL transactions rather than providing new collateral.

3.Redelivery of manufactured dividends
In line with the need of market practice, the return of manufactured dividends and loaned securities can be done separately. Borrowers of fixed-rate or competitive auction SBL transactions no longer need to return the manufactured dividends together with the loaned securities. They may redeliver the manufactured dividends within 3 days after the payoff date or earlier regardless of when they return the loaned securities.

We hope these new measures will grant more flexibility to lenders and borrowers and consequently encourage more participants in the SBL market.